Oregon Tool, Inc. Secures Funding to Enhance Liquidity and Optimize Capital Structure

Oregon Tool, Inc. Boosts Liquidity and Strengthens Capital Structure

In a significant move to bolster its financial standing, Oregon Tool, Inc. has successfully completed a series of beneficial financing transactions, marking a pivotal moment in its operational trajectory. The company, based in Portland, Oregon, is renowned for its precision cutting, sawing, and mowing tools designed for various industries including forestry and agriculture.

On February 21, 2025, Oregon Tool announced the completion of these transactions, aimed at enhancing liquidity and refining its capital structure. This initiative comes with a substantial financial injection of $150 million, which is before the application of these funds. Additionally, the company has managed to reduce its debt obligations by over $75 million ahead of the executed transactions.

This strategic financial restructuring also extends the maturity of debt obligations to the fourth quarter of 2029, allowing the company to secure essential funds for operational needs and strategic growth initiatives. This restructuring was supported by an impressive majority of stakeholders, including all of the Revolving Credit Facility lenders, roughly 83% of existing term loan amounts, and about 81% of its unsecured notes.

As part of this strategic financial maneuvering, the newly formed subsidiary, Oregon Tool Lux LP, established in Luxembourg, facilitated the issuance of approximately $156 million in new first lien debt through term loans. Concurrently, lenders of the Revolving Credit Facility exchanged their credits into a novel revolving credit facility under the new subsidiary, reinforcing the foundation on which Oregon Tool will expand its operational capabilities.

The proactive approach taken by Oregon Tool is backed by its commitment to long-term success, as stated by Terry Hames, the company’s Chairman and CFO. “This transaction positions the company for long-term success and benefits our key stakeholders. We are equipped to continue investing in our strategic initiatives, deliver innovative solutions to our clients, and drive profitable growth,” he commented.

A group of financial advisors, including PJT Partners LP and Milbank LLP, played a crucial role in structuring these transactions, demonstrating the high level of expertise involved in this process. Post-transaction, Oregon Tool's enhanced liquidity will position it favorably to pursue new opportunities and maintain its competitive edge in a market that is continually evolving.

Oregon Tool, Inc. is not just a leading player in the tools and equipment industry but also a notable name in the production of saw chains and saw blades for chainsaws, with a footprint that extends across more than 110 countries. Its brand portfolio includes respected names like Oregon®, Woods®, and Carlton®, making it synonymous with quality and reliability in professionals’ tools.

As the market looks forward, the strategic steps taken by Oregon Tool, from restructuring to securing new financing, signal a commitment to innovation and operational excellence that is essential in today’s fast-paced environment. These initiatives are poised to not only enhance the company’s liquidity but also optimize its capital structure to foster long-term sustainability and growth.

For further updates, Oregon Tool encourages stakeholders and interested parties to connect through their official media channels and stay informed on future developments.